Why do they need Disney when there are other distribution outlets?
Because none are nearly as good as Disney. They are masters at marketing, tie-ins, etc etc. Even a mediocre movie as Chicken Little does well. The name alone is still worth a lot.
Would I prefer a stand-alone Pixar, with a more equitable distribution agreement? Certainly, as they made a great team and from my perspective this was the best role for Disney.
But there are certainly large positives to the merger, Jobs & Lasseter could especially have a huge impact and leverage that behemoth. the greater use of Pixar ideas in the theme parks and TV is also an incredibly large potential.
The key will be to see if Pixar can maintain the focus on the stories/content, quality -- while maximizing the other pieces of Disney. It will certainly be a challenge.
A little early to predict doom, but I have not finished my due diligence yet, so I may change my mind.
As an aside, today's valuation is greatly inflated as a standalone company on todays numbers, so it already incorporates a very nice premium for future value, by any measure -- P/B, P/S, P/E, P/CF. |
